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| The main reason why businesses are afraid of the interest rate support package is fear of procedures, especially fear of legal risks, fear of being inspected when accessing this credit package. (Source: Customs Newspaper) |
Fear of procedures, worry about "one mistake leading to another"
According to data from the State Bank of Vietnam (SBV), as of the end of August 2023, only 2,100 customers had accessed the interest rate support package, with the cumulative interest rate support amount since the beginning of the program reaching nearly VND 781 billion, or less than 2%. Many eligible businesses have refused to complete procedures to access this interest rate support package.
Ms. Huynh Thi Ngoc Tram, Director of JFT Vietnam Co., Ltd. (Lam Dong) said that the main reason why businesses are afraid of the interest rate support package is fear of procedures, especially fear of legal risks, fear of being inspected when accessing this credit package.
Duc Toan One Member Co., Ltd. (Dak Nong) also said that accessing the preferential interest rate package requires complicated procedures, such as financial reports, economic contracts, purchase orders, warehouse receipts, money transfer invoices... which are not suitable for small and medium enterprises.
“Most small businesses are family businesses, with a compact structure, without monthly monitoring machines or invoices. People in rural areas still have the habit of paying in cash. If they want to have standard reports, contracts, invoices, etc., they will incur accounting costs, reducing business income,” said a representative of this company.
Another business in Hanoi also said that the biggest concern for businesses when accessing interest rate support packages is “the fear of a small mistake leading to a big problem”, as the inspection of the interest rate support package will result in the business being subject to tax inspection or inspection of other activities. Meanwhile, the lending interest rate is now more affordable, so businesses do not need to borrow interest rate support credit packages.
Businesses expect more substantial support packages
Regarding the reason for the slow disbursement of the interest rate support package, according to the Standing Committee of the National Assembly's Economic Committee, the proposal and development of policies are not close to reality, and the procedures cause many problems.
In the report sent to the National Assembly, the Government pointed out a series of reasons for the slow disbursement of the 2% interest rate support package (VND 40,000 billion). The first reason is that customers are eligible but choose not to benefit from the policy, mainly due to the fear of inspection and examination, weighing the benefits of interest rate support and the costs incurred if receiving interest rate support (must monitor records, documents, comply with post-audit procedures, inspection, audit, and examination by competent state agencies).
Many customers are worried that the competent state agency will determine that the interest support money must be recovered because this money has been accounted for in the company's profits and distributed as dividends to shareholders.
In addition, banks have difficulty identifying customers who are “resilient” due to the lack of specific criteria. Many production and business households borrow capital from commercial banks, but do not register their business households and are therefore not eligible for support.
In addition, the lending interest rate has decreased significantly in recent times and banks have launched many preferential loan packages with simple procedures, so businesses do not have the need to access interest rate support packages.
On the business side, Ms. Vu Thi Sang, Director of Duc Toan LLC, said that what businesses need most support at present is trade promotion and finding outlets for their products. Of course, with preferential credit packages, the simpler the procedures, the more favorable it is for businesses.
"The recent interest rate support policies are very useful, but they need to be more substantial," a representative of Duc Toan Company suggested.
A commercial bank leader said that they invited businesses to come and support interest rates, but the businesses refused and said they would "give it up" to other businesses, in fact they were afraid of inspections and procedures.
Deputy Governor of the State Bank of Vietnam Dao Minh Tu affirmed that the VND40,000 billion interest rate support package is the right of enterprises, and any enterprise facing difficulties in accessing this credit package can report to the State Bank for handling.
Previously, in August 2023, the State Bank of Vietnam issued Directive No. 03/CT-NHNN on implementing the 2% interest rate support program. Accordingly, the Governor requested the entire industry to promptly disburse this interest rate support package. At the same time, promptly handle cases of non-compliance with regulations, evasion, and refusal to support interest rates for customers who meet the conditions for support.
The Governor requested that commercial banks proactively approach customers, accompany and guide customers, and help customers understand the policy correctly to minimize customer complaints and recommendations. At the same time, strictly prohibit acts that cause difficulties and inconvenience, issue additional conditions and procedures different from the provisions of the Government's Decree and the Circular of the State Bank to limit the subjects receiving interest rate support, and cases where customers are eligible and meet all conditions but are not eligible for interest rate support.
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